Surprising Jobless Claims Drop: Good or Bad?🤔

What this means for my trading plan                                                                                                                                                                                                                                                                                                                                                                                                                 September 07, 2023 | [Read Online]( Good evening, Traders, Today has been a data-intensive day and I'd like to share some insights into what the recent jobless claims report means for our trading strategies. This morning, the U.S. Labor Department released its latest jobless claims report, surprising us with a significant drop of 13,000 claims, bringing the total to 216,000 for the week ending September 2. This figure marks the lowest level we've seen since mid-February and underscores robust hiring trends in the labor market. In a typical scenario, a drop in jobless claims would be considered positive news. However, our current market context is anything but typical. The unexpected decrease in jobless claims actually had a negative impact on the markets today. This seemingly counterintuitive reaction is due to the fact that it provides the Federal Reserve with more justification to raise interest rates in the upcoming months. Many of you may be wondering what this means for my trading strategies. Based on today's data, it is likely that the Fed will pause any immediate rate hikes in this month's meeting, emphasizing their need to see more data. However, the real concern lies in the November meeting, where I anticipate the Fed may feel compelled to raise rates again. Consequently, while we may observe a short-term market uptick, I will be watching for potential drops later this month as fears of rate hikes resurface. Our Chief U.S. Economist at JP Morgan Chase, Michael Feroli, has emphasized the gradual easing in labor market conditions in last week's unemployment report for August, which aligns with today's jobless claims data. In summary, despite the positive signs in the labor market, we must approach tomorrow's trading markets with a degree of caution. The current market pressures, combined with the Fed's evolving stance, make it imperative to stay informed and flexible in trading strategies. Thank you for reading and here’s to your success, P.S. If you feel you might have a credit or just have a general question, please give Jeff Brown a call at 443-870-4406 or you can email him at jbrown@ragingbull.com. DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment. RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. Employees, owners, and other service providers of RagingBull.com, LLC are paid in whole or in part by commission based on their sales of Services to subscribers. WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services. However, Ragingbull.com, LLC, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication. Update your email preferences or unsubscribe [here]( © Market Navigator 62 Calef Hwy. #233 lee, NH 03861, United States of America [[beehiiv logo]Powered by beehiiv](